Friday, December 19, 2008

Why We Are Not a $7,000 Per Capita Country Anymore

Simply because when that number was computed you needed 25 rupees to make a dollar. As today you would need about Rs7.50 more for a greenback that per capita number falls approximately to USD 5,385. Which illustrates an interesting point: as a nation we become poorer when our currency loses value. And it loses value because we don't do the right things and/or we do too many dumb things. Of course we should not read to much into statistics like averages because they don't tell us the whole story. Still, it will be a little while before it reappears in the speeches of our local cherry-pickers.

PPP-based per capita as published by knoema.com shows that Seychelles enjoy better standard of living. Anyways these data are only indicators that do capture some easily perceptive facts but ignore more subtle realities like damning inequalities. Though I wonder whether these are really subtle in Mauritius for anyone willing to take a non-manufactured look! You are absolutely right Manou has contributed largely to mitigate the otherwise sordid GDP expansion. Basant Roi is part of the agency including Forget, Sithanen, Oodiah and a few other infamous lads rewarded to twist and shout for their masters.

Better standard of living in Seychelles? With a higher inequality, 40% of population below poverty line... Well, a massive influx of petro-dollars to save all aspects of its economy as from 2008 must have certainly skewed its stats, eh?

GDP per capita is an average so it has the limitations of all averages. Still, it's a popular stat and it's interesting to note that even a limited yardstick is going down with the obsession of the entertainer-in-chief at the BOM. For more serious analysis we're much better off playing with the HBS data.